HORSHAM, PA-Two Capmark Financial Group subsidiaries have a definitive sales agreement on a portfolio of commercial mortgage loans with an aggregate unpaid principal balance of about $911 million; the buyer was not disclosed. The portfolios were marketed by Eastdil Secured, and Houlihan Lokey also acted as an advisor on the transaction.
Locally-based Capmark is liquidating its portfolios of loans and real estate under a court-ordered bankruptcy process. The company filed for Chapter 11 protection in 2009 after investments failed amidst the financial and credit crises, and emerged from bankruptcy on Sept. 30, 2011.
“We are pleased to have reached agreement on this transaction, which is consistent with our strategy of monetizing assets in an orderly manner at prices consistent with market value,” Capmark’s CEO, William C. Gallagher, says in a statement.
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About 97% of the portfolio of performing and non-performing loans to be sold to is owned by Capmark Bank and the remainder is owned by Capmark Finance LLC. The closing of the transaction is expected to take place this month. Last week, Capmark announced that it would make an optional redemption of $125 million of its floating rate first lien extendible B notes on June 29; the notes come due in 2015.
Capmark was originally started as GMAC Commercial Mortgage, part of General Motors’ financial-services operation, and adopted its present name after being spun off in 2006. Houlihan Lokey Capital was hired last year to devise strategic alternatives for liquidation of Capmark Bank’s loan portfolios and other assets.
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